The Bank of England, that paragon of financial wisdom, has decreed that individuals may hold no more than £20,000 in stablecoins. A noble effort to prevent the masses from accumulating too much digital gold, no doubt. 🧠💸
wholesale transactions between the BoE and the Financial Conduct Authority’s Digital Securities Sandbox. Because nothing says “innovation” like a secretive, government-backed crypto playground. 🧙♀️
The Bank of England also allows stablecoin issuers to hold 60% of their assets in short-term U.K. government bonds, with the remaining 40% as unremunerated deposits. A masterclass in financial juggling, truly. 🎩🐇
This arrangement is meant to ensure stability, but one wonders if it’s more about control than caution. After all, who needs liquidity when you can have bureaucracy? 🤷♂️
The BoE even permits more interest-earning debt, as if convincing the public that issuers have enough liquidity to meet withdrawal demands. A reassuring thought, isn’t it? 💸
The document clarifies that non-systemic stablecoins (like those used for crypto trading) are the FCA’s problem. Because nothing says “trust” like a regulatory body passing the buck. 🤷♂️
The Bank of England and FCA plan to release joint regulations by 2026. Until then, they’ll accept feedback until February 2026. A marathon of compliance, no doubt. 🏃♂️
How does the Bank of England governor feel about stablecoins?
Initially, Governor Andrew Bailey warned banks to steer clear of stablecoins. Back in July 2025, he claimed they could “threaten the very nature of money.” A prophecy that has yet to materialize, of course. 🧙♂️
“Stablecoins must have the characteristics of money,” Bailey declared. A sentiment as timeless as it is confusing. 🧠
“We must look at them through the lens of financial stability and money itself,” he continued. A poetic take on regulation, if ever there was one. 📜
Despite Bailey’s skepticism, the central bank has softened its stance. A shift as sudden as it is mysterious. 🤔
Deputy Governor Sarah Breeden, ever the optimist, claims the proposal “supports innovation and builds trust.” As if the public isn’t already trusting their money to algorithms and code. 🤖💸
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2025-11-10 17:52